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City – Submarket
Atlanta – Q2 2009
/ Office Statistics Preview / Q1 2011

A first look at office Atlanta office submarket map

fundamentals in Atlanta
All signs point to a relatively flat first quarter 2011
Metro Atlanta’s 140,000,000-square-foot office inventory has not
expanded since this time last year when the latest development spike
came to an end with the delivery of 1.6 million square feet of tower
space to the market. All the newly delivered inventory coupled with
elevated unemployment levels and limited tenant growth in the wake of
the economic recession have driven vacancies to sit above 20.0 percent
since third quarter 2009.

However, leasing momentum has slowly begun to improve as

employers gain confidence in the market’s recovery and 2010 saw
moderate but positive demand. Similar growth is expected to continue in
2011 and first quarter is on track to see relatively flat absorption
somewhere in the range of negative 100,000 square feet to positive
100,000 square feet. Although many of the known move-ins scheduled
in the first three months of the year will not contribute significantly to net
demand, tenant expansions and new branch office locations are on the
rise after years during which employers contracted or stood on the hiring
Preliminary key market indicators
sidelines.
Stock 140,000,000 SF
If predictions hold true and the office market records negligible Overall net absorption -100,000 to 100,000 SF
absorption, vacancies will fluctuate only incrementally in the first
quarter. Likewise, rental rates should remain stagnant at the end of Overall vacancy rate 22.3 to 22.6%
March. Historically, rental rates are exactly in line with 2004 asking Average asking rent $19.80 to 19.90 PSF
prices at the end of the previous economic recession from the earlier
part of the millennium. Given a continued pause in future development Under construction 0 SF
and steady if small employment expansion, Metro Atlanta should see Arrows indicate the projected trend in fundamentals from the previous quarter: rising, falling or flat.
office fundamentals continue to upswing, particularly in the latter half of Statistics are presented as a range or an estimate, and are only preliminary; final figures may be
significantly different due to adjustments or to information gathered in the last weeks of the quarter.
the year and beyond into 2012.

Sarah Watton ©2011 Jones Lang LaSalle IP, Inc. All rights reserved. No part of this publication may be reproduced by
Senior Research Analyst, Office any means, whether graphically, electronically, mechanically or otherwise howsoever, including without
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